选择题样题

1.An increase in a nation's financial liabilities to foreign residents is a:A.r eserve inflow.B.r eserve outflow.C.c apital imports.D.c apital exports.2.Which of the following is considered a capital inflowA.A sale of . financial assets to a foreign buyerB.A loan from a . bank to a foreign borrowerC.A purchase of foreign financial assets by a . buyerD.A . citizen's repayment of a loan from a foreign bank3.In a country's balance of payments, which of the following items will be recorded as adebit entryA.D omestic bank balances owned by foreigners are reducedB.F oreign bank balances owned by domestic residents are reducedC.A ssets owned by domestic residents are sold to nonresidentsD.S ecurities are sold by domestic residents to nonresidents4.When a . resident increases her holdings of a foreign financial asset, this item isrecorded as a:A.c redit entry in the . current account.B.d ebit entry in the . current account.C.c redit entry in the . capital account.D.d ebit entry in the . capital account.5.Which of the following would tend to contribute to a . current account surplusA.T he United States makes a unilateral tariff reduction on imported goods.B.T he United States cuts back on American military personnel stationed in Japan.C.. tourists travel in large numbers to Asia.D.R ussian vodka becomes increasingly popular in the United States.6. A country experiencing a current account surplus:A.n eeds to borrow internationally.B.i s able to lend internationally.C.m ust also have had a surplus in its overall payments balance.D.s pends more than it earns on its merchandise and service trade, international incomepayments and receipts and international transfers.7. . A nation is considered to be a(n) _____ in the international market, if its currentaccount is in deficit.A.i mporterB.e xporterC.b orrowerD.l ender8. A nation is called a lender if:A.i ts financial account is in deficit during a time period.B.i ts current account is in surplus during a time period.C.i ts current account is in deficit during a time period.D.i ts net stock of foreign assets is positive.9. A nation is called a creditor if:A.i t provided financial assets to other countries.B.i ts net stock of foreign assets is positive.C.i ts current account is in surplus during a time period.D.i ts current account is in deficit during a time period.10.The international investment position of a country shows:A.i ts stocks of international assets during a time period.B.i ts stocks of international liabilities during a time period.C.i ts stocks of international assets and liabilities at a point in time.D.w hether its current account is in deficit or surplus at a point in time.11. If the price of British pounds in terms of the . dollars is $ per pound, then theprice of . dollars in terms of British pounds is:A. ≤ per dollar.B. ≤ per dol lar.C. ≤ per dollar.D. ≤ per dollar.12.Rapid increases in the . exports of goods and services will result in a(n) _____ foreigncurrency and a(n) _____ the . dollars in the foreign exchange market.A.i ncrease in the demand for; increase in the supply ofB.i ncrease in the supply of; increase in the demand forC.s hortage of; surplus ofD.d ecrease in the supply of; decrease in the demand for13.An increase in the . imports of goods and services from the EU countries will result ina(n) _____ euro and a(n) _____ the . dollars in the foreign exchange market.A.i ncrease in the supply of; increase in the demand forB.d ecrease in the demand for; decrease in the supply ofC.s urplus of; shortage ofD.i ncrease in the demand for; increase in the supply of14.Assume you are a Chinese exporter and expect to receive $250,000 at the end of 60 days. Youcan remove the risk of loss due to a devaluation of the dollar by:A. s elling dollars in the 60-day forward exchange market.B. b uying dollars now and selling these dollars at the end of 60 days.C. s elling the yuan equivalent in the forward exchange market for 60-day delivery.D. k eeping the dollars in the United States after they are delivered to you.15.Assume you are an American importer who must pay 500,000 Euros at the end of 90 days whenyou receive 1,000 cases of French wine at your warehouse in New York. Suppose that you have not covered this transaction in the forward market, in which of the following cases will you suffer the largest lossA. T he euro spot exchange rate value vis-à-vis the dollar does not changeB. T he euro (spot) initially appreciates by 2 percent, and then depreciates by 1 percentC. T he euro (spot) initially depreciates by 3 percent, and then appreciates by 2 percentD. T he euro (spot) initially appreciates by 3 percent, and then depreciates by percent16.A _____ gives the holder the right but not the obligation to sell a foreign currency at sometime in the future at a price set today.A. f orward exchange contractB. c urrency swapC. p ut optionD. c all option17.Which of the following financial instruments provides a buyer the right (but not theobligation) to purchase or sell a fixed amount of currency at a prearranged price, withina few days to a few yearsA. L etter of creditB. C urrency optionC. C urrency swapD. F orward contract18.An investment is _____ if it is fully hedged against exchange-rate risk.A. c overedB. u ncoveredC. s peculativeD. r isk neutral19.For an investor who starts with dollars and wants to end up with dollars in the future, whichof the following choices is an example of a covered international investmentA. S ell dollars at the spot rate, invest the proceeds in foreign currency-denominatedfinancial instruments, and sign a forward exchange contract to buy the foreign currencyB. S ell dollars at the spot rate, invest the proceeds in foreign currency-denominatedfinancial instruments, and sign a forward exchange contract to buy dollarsC. S ell dollars at the spot rate, invest the proceeds in foreign currency-denominatedfinancial instruments, and then buy dollars at the future spot rateD. B uy a dollar-denominated financial asset20.For an investor who starts with dollars and wants to end up with dollars in the future, whichof the following choices is an example of an uncovered international investmentA. S ell dollars at the spot rate, invest the proceeds in foreign currency-denominatedfinancial instruments, and sign a forward exchange contract to buy the foreign currencyB. S ell dollars at the spot rate, invest the proceeds in foreign currency-denominatedfinancial instruments, and sign a forward exchange contract to buy dollarsC. S ell dollars at the spot rate, invest the proceeds in foreign currency-denominatedfinancial instruments, and then buy dollars at the future spot rateD. B uy a dollar-denominated financial asset21.The covered interest differential is _____ the sum of the forward premium on a currencyand the interest rate differential.A.a pproximately equal toB.m ore thanC.e xactly equal toD.l ess than22.The exchange rate value of a foreign currency is _____ in the short run by a rise in theexpected future spot exchange rate value.A.r aisedB.l oweredC.m ade volatileD.n ot affected23._____ is buying a country's currency spot and selling that country's currency forward, tomake a net profit from the combination of the difference in interest rates between countries and the forward premium on the country's currency.A. C overed interest arbitrageB. U ncovered interest arbitrageC. C overed interest parityD. U ncovered interest parity。